China National Building Material (03323.HK)(CNBM) said it has entered into a capital contribution agreement with Shenzhen Jingda Equity Investment Management Company Limited, Shanghai Zhentong Equity Investment Management Company Limited and Beijing Huachen Pujin Asset Management Center (Limited Liability Partnership), with a view to establishing Southwest Cement Company Limited in the PRC.

CNBM will contribute RMB5 billion to the JV company's RMB10 billion registered capital and own 50% equity interest in the JV company. Shenzhen Jingda, Shanghai Zhentong and Beijing Huachen will own 30%, 15% and 5% equity interest in the JV company respectively.

The scope of business activities of the JV company is production (limited to subsidiaries and branches), research and sale of clinker, cement and cement products, commercial concrete and limestone.